What is it?
The price-to-tangible book ratio compares a firm's market value to tangible book value by dividing the price per share by tangible book value per share (TBVPS). Tangible book value is calculated as total assets minus intangible assets (patents, goodwill) minus liabilities.
Who is interested?
The financial community and investors.
What does it tell me?
This is a valuation metric that measures how much investors are paying for each dollar of tangible book equity.